SpaceX, Elon Musk’s aerospace company, is reportedly set to invest $2 billion in his AI startup, xAI. This would be part of a larger $5 billion equity raise, which includes an additional $5 billion in debt, as announced by Morgan Stanley in late June. This marks the first investment by SpaceX in xAI, and it would also be one of SpaceX’s biggest investments in another company.
According to sources close to the deal, SpaceX has already started using xAI’s chatbot, Grok, to provide customer service for its Starlink internet service. The investment and partnership suggest that the two companies are looking to expand their collaboration, with the possibility of more integrations in the future. Musk has a history of having his companies support one another, such as when xAI was merged with X (formerly Twitter) earlier this year.
Despite some controversy surrounding xAI, including an apology for antisemitic comments made by Grok, the company has continued to grow. Tesla is even planning to integrate Grok into its vehicles, further expanding its reach. This latest move by SpaceX is a significant step, not only for xAI but also for Musk’s vision of creating a cohesive network of interconnected companies leveraging artificial intelligence.
The proposed investment highlights the increasing focus Musk is placing on AI technologies. With xAI’s growing influence and SpaceX’s strategic support, it’s clear that Musk sees AI as a key part of the future of his ventures. This investment could accelerate the development of xAI’s products, particularly Grok, which has already begun to impact various industries.In sum, SpaceX’s $2 billion investment in xAI marks a new phase of synergy between Musk’s companies, with both sides poised to benefit from enhanced AI capabilities and greater collaboration.
